According to the recent executive survey conducted by Conning Insurance Research on artificial intelligence (AI) adoption within the insurance industry, 77% of respondents indicated they are in some stage of incorporating AI into their operations.
Manu Mazumdar, Director and Head of Data Analytics, Insurance Technology and Retirement at Conning Insurance Research, highlights that this year’s figure represents a notable increase of 16 percentage points from 61% in 2023.
Scott Hawkins, Managing Director and Head of Insurance Research at Conning, comments on this significant rise in AI adoption, stating, “Insurers are adapting, developing, and piloting innovative AI applications in pursuit of greater efficiency to drive customer and distributor satisfaction.”
“In addition, insurers have access to a wider and larger selection of data than ever before and AI is a crucial technology in managing that data,” Hawkins adds, emphasising why 77% of respondents are embracing AI, as it reshapes the insurance industry and becomes an indispensable tool.
The report also emphasises the potential of emerging technologies like generative AI in uncovering deeper insights into customer needs, potentially leading to higher profitability.
However, the report underscores that the development and testing of such technologies will require significant investments in both time and resources.
Consequently, this trend is expected to exert upward pressure on expense ratios in the short term, with generative AI driving shifts in the types of staff and positions essential for managing a modern insurance company.
